Question: . Foreign currency transactions can be executed on a spot or forward basis. Fill in the blanks with the proper rate basis: ____________ the price

. Foreign currency transactions can be executed on a spot or forward basis. Fill in the blanks with the proper rate basis:

____________ the price at which foreign currency can be purchased or sold today.

____________ the price today at which foreign currency can be purchased or sold sometime in the future.

When executing trades on a spot or forward basis, premiums and discounts are involved. Circle or highlight the appropriate term: The forward rate can exceed the spot rate on a given date, in which case the foreign currency is said to be selling at a premium or discount in the forward market, or the forward rate can be less than the spot rate, in which case it is selling at a premium or discount.

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